Page 22 - Insurance Times July 2022

WILL CROP

INSURANCE HERALD

A CHANGE IN THE

INDIAN GENERAL

INSURANCE

INDUSTRY?

he General Insurance Business (Nationalisation) provides for allowing greater private participation in public
T Amendment Bill, 2021 was passed by the Rajya sector insurance companies and enhancing insurance
penetration and social protection, among other objectives.
Sabha on August 11. According to the
government, the need arose to address such
world and the country's share in global non-life insurance
matters as (a) push for higher private participation in public In non-life insurance business, India is ranked 14th in the
sector insurance companies; (b) raise the level of insurance market was 0.77 per cent in 2020. Insurance penetration in
penetration and thereby social protection; (c) secure the the country increased from 3.76 per cent in 2019-20 to 4.20
interests of policyholders in a better manner; (d) contribute per cent in 2020-21, registering a growth of 11.70 per cent.
to faster growth of Indian economy. The General Insurance
bill amended the General Insurance Business India's general insurance industry narrowly missed the
(Nationalisation) Act, 1972. This law dealt with nationalizing milestone of Rs 2 lakh crore of gross premium during 2020-
all private general insurers in the country. 21, due to the negative growth in motor insurance - the
largest portfolio in the industry - and crop business. The
The amended legislation has removed the requirement that industry ended financial year 2020-21 with a positive year-
the central government should hold not less than 51 per on-year (y-o-y) growth of 5 per cent at Rs 1,98,735 crore,
cent of the equity capital in a specified insurer. Also, it aided by growth in health insurance segment.

While the health portfolio, propelled by the Covid 19
About the author pandemic, and has grown by 11 per cent to Rs 58,584 crore,
two large business segments- overall motor portfolio and
Jagendra Kumar
crop business- of the industry declined during FY21. Premiums
Ex. CEO,
in the overall motor portfolio have fallen by around 2 per
Pearl Insurance Brokers
cent to Rs 67,790 crore, while the crop business has fallen
Jaipur by 3.5 per cent to Rs 31,184 crore during FY 2020-21. Among
22 The Insurance Times, July 2022